Financial Results Briefing Session
for the Second Quarter of
the Fiscal Year Ending January 2024

Computer Engineering & Consulting Ltd. (9692)
September 13, 2023
© Computer Engineering & Consulting Ltd. All rights reserved.

Contents

1.

Operating Results for the Second Quarter of the Fiscal
Year Ending January 20242.

Full-Year Earnings Forecast for the Fiscal Year Ending
January 2024

3.

© Computer Engineering & Consulting Ltd. All rights reserved.

Appendix1

Contents

1.

Operating Results for the Second Quarter of the Fiscal
Year Ending January 20242.

Full-Year Earnings Forecast for the Fiscal Year Ending
January 2024

3.

© Computer Engineering & Consulting Ltd. All rights reserved.

Appendix2

Year-on-year comparison of 2Q results◼ Net sales and income increased as system development projects continued to be favorable in line with the strong
demand for DX from major customers.
◼ Operating income and ordinary income marked new record highs, but net income declined in reaction to therecording of extraordinary income in the previous fiscal year*.
(Unit: Million yen)

FY2023/2Q

FY2024/2Q

Change from the same period of
the previous fiscal year
Amount of change

Rate of change

23,47826,445

2,967

12.6%

Operating income

1,969

3,525

1,555

79.0%

Operating income ratio

8.4%

13.3%

4.9 ptーOrdinary income

1,988

3,549

1,560

78.5%

Ordinary income ratio

8.5%

13.4%

4.9 ptーNet income

3,495

2,452

(1,043)(29.9%)Net income ratio

14.9%

9.3%

(5.6 pt)ーNet sales* Gain on sale of investment securities was recorded to extraordinary income in the second quarter of the fiscal year ended J anuary 2023.
© Computer Engineering & Consulting Ltd. All rights reserved.

3

First half Financial results* Description of the focused business is detailed in the Appendix.

◼
◼
◼

Net sales increased due to growth in the focused business* and the core business.
Operating income increased due to higher revenue, expanded sales of in-house solutions, and a reactionary increase in allowance forloss on orders received.
The operating income ratio rose in 1Q due to the year-end demand from customers and an increase in highly profitable projects, but
returned to normal levels in 2Q.
Net sales (100 million yen)

Rate ofchangeOperating income (100 million yen)

252

245

119

1Q

28

132
109

12

26
22
11

114

118

132

FY2020/1 FY2021/1 FY2022/1 FY2023/1 FY2024/1© Computer Engineering & Consulting Ltd. All rights reserved.

16

15

13

12.2% 12.1%

16
19

8.4%
11.4% 10.9%

10

126

13.3%
12.8%

8
126

2Q (Cumulative)

35

234

116

+4.9 pt

2Q

264
224

126

1Q

2Q

Rate ofchangeOperating income ratio (%)+79.0%+12.6%
1Q

Rate ofchange

13.9%

9.9%
7.6%

18
9

FY2020/1 FY2021/1 FY2022/1 FY2023/1 FY2024/1

FY2020/1 FY2021/1 FY2022/1 FY2023/1 FY2024/1
4

Major factors for increase/decrease in consolidated operating income(Unit: Million yen)

-50
Corporate expenses+959• Promotion expenses• Personnel expenses andhiring enhancement
expenses

+148
+496

2Q of FY ended
Jan. 2023

Service Integration
Business

Digital Industry
Business• Increase in income due tohigher revenues• Increase in income due tohigher revenues• Advance recording for inhouse security products

Reactionary increase inallowance for loss onorders received• Working environment
improvement expenses

2Q of FY ending
Jan. 2024
Operating income
3,525

Operating income
1,969

Total increase in income: +1,555© Computer Engineering & Consulting Ltd. All rights reserved.

5

Year-on-year comparison by business segment◼ In Digital Industry Business, both net sales and operating income increased thanks to growth in ICT investment
made by customers in the manufacturing industry.

◼ In Service Integration Business, sales increased due to advance recording for in-house security products and ICT
infrastructure construction projects. Operating income grew due to a reactionary increase related to “allowance
for loss on orders received,” as well as the impact of the higher revenue.

(Unit: Million yen)

FY2023/2Q
Operating income
Rate of return

Net sales

Digital Industry
Business

8,260

Service Integration
Business

15,218

Corporate expenses

ー

Total

© Computer Engineering & Consulting Ltd. All rights reserved.

FY2024/2Q

23,478

1,961
23.7%

2,066
13.6%

(2,058)1,969
8.4%

Net sales

9,052
17,393ー
26,445

Amount of change

Operating income
Rate of return

Net sales
Rate of change

Operating income
Rate of change

2,109

792

148

23.3%

9.6%

7.6%

3,524

2,175

1,457

20.3%

14.3%

70.5%

(2,108)

ー

(50)

3,525

2,967
12.6%

1,555

13.3%

79.0%
6

Digital Industry Business◼ Operating income/Operating income ratio (100 million yen, %)◼ Net sales (100 million yen)

30%
200

40

23.7%

23.3%

21.6%
150

19.2%

30

100

162
122

50

42

90

82

77

1Q

2Q

3Q

4Q

FY2021/1

1Q

2Q

3Q

FY2022/1

Business category

4Q

1Q

2Q

3Q

4Q

FY2023/1

1Q

2Q

FY2024/1

11

10

1Q

2Q

FY2021/1

3Q

4Q

1Q

0%
2Q

3Q

FY2022/1

4Q

1Q

2Q

3Q

FY2023/1

4Q

1Q

2Q

FY2024/1

Point⚫ Both net sales and operating income were flat due to sluggish sales of products despite a growing trend
in business negotiations on DX in the manufacturing industry.
⚫ Connected-related cloud development and automobile-related big data analytics remained strong.
⚫ Verification services also increased significantly due to the progress in the shift to automated testing and
CI/CD construction.
⚫ Major clients’ core system development increased, and development projects (in design and financeareas) grew.
⚫ The previous year saw an increase in customer demand at the end of the fiscal year, but this fiscal year
see income returning to normal levels.
⚫ In addition to growth in logistics solutions, system development projects (medical and EOS services)increased.

Smart factory
Connected services

Chubu services
Nishinihon services© Computer Engineering & Consulting Ltd. All rights reserved.

21

19

14

0

Net sales
Operating income
Rate of change
Rate of change

10% or more YoY increase

8

10%

28

21

18
9

0

31

25

10

46

40

39

38

33

123

116

84

20

168

158

20%

5 to less than 10% increase

5 to less than 5% decrease

5 to less than 10% decrease

10% or more YoY decrease

7Service Integration Business◼ Operating income/Operating income ratio (100 million yen, %)◼ Net sales (100 million yen)
400

20.3%

60

300

20.0%

16.9%

15.8%

13.6%

40
200

317
237

100

161

2Q

3Q

4Q

1Q

Business category

20

14

16

9

0
2Q

3Q

FY2022/1

FY2021/1

35

34

24

14

0
1Q

45

34

25

85

77

74

45

37

173

152

146

83

20

229

218

10.0%

50

313

293

4Q

1Q

2Q

3Q

4Q

FY2023/1

1Q

2Q

0.0%
1Q

FY2024/1

Net sales
Operating income
Rate of change
Rate of change

Platform architect

4Q

1Q

2Q

3Q

FY2022/1

4Q

1Q

2Q

3Q

4Q

FY2023/1

1Q

2Q

FY2024/1

Point⚫ Both sales and income expanded due to an increase in business negotiations for nearshoredevelopment and operation projects for major customers.

Group companies© Computer Engineering & Consulting Ltd. All rights reserved.

FY2021/1

3Q⚫ Both net sales and operating income increased due to an increase in new customers for services incooperation with Microsoft in focused business areas, although financial development was flat.
⚫ In terms of migration needs, business was favorable with many discussions aimed at cloud computing
and security enhancement.
⚫ As for security services in the focused business areas, in-house products for government offices rose
net sales and operating income due to advance recording from the second half of the fiscal year.
⚫ Both sales and income grew as demand related to operations in the ICT infrastructure construction
business increased and the level of semiconductor supply normalized.

Service integration

10% or more YoY increase

2Q

5 to less than 10% increase

5 to less than 5% decrease

5 to less than 10% decrease

10% or more YoY decrease8

Progress of focused business◼ Progress varies from area to area, with mobility and migration leading the way in the first half.

DigitalIndustry
Business

Production andlogistics solutions

Mobility services

Progress rate
against full-yearsales target

47.0%

Migration services⚫ Cloud development and automobile-related big data analytics projects have remained strong.
⚫ In big data analysis, vehicle information (CAN) and location data analysis increased, leading tobusiness negotiations on projects of a larger scale.
⚫ In Dynamics 365 CRM and Power Platform, a major business negotiation for a new client
contributed to growth.
⚫ Business negotiations on generative AI-related services have been on the rise, promoting inhouse research focusing on AI research.

Services incooperation with
Microsoft Japan

Service
Integration
Business⚫ Production: Progress rate has been slow due to sluggish product sales, while DX businessnegotiations in the manufacturing industry are on the rise.
⚫ Logistics: In-house logistics solutions are booming, and business negotiations are also risingagainst the backdrop of logistics issues.

Progress rate
against full-yearsales target

49.7%⚫ In terms of migration needs, business was favorable with many discussions aimed at cloudcomputing and security enhancement.
⚫ Business negotiations increased in connection with the mainframe exit by vendors, exit byUNIX, and end of support for Windows Server 2012.

Security services⚫ Large-scale business deals on in-house security products for government and public offices
contributed to raising sales and income.
⚫ Demand for security products expanded although upgrading demand to increase resilienceamong local governments calmed, and stocking and sales declined.

DX cloud platform⚫ We are reconsidering our policies, including considering the configuration of services based on
customer needs and product differentiation, and expanding the scope of coverage.

© Computer Engineering & Consulting Ltd. All rights reserved.

9

Progress of focused business◼ Sales progressed as planned, and the operating income ratio progressed well against the full-year target.
◼ Advance recording for in-house security products contributed to raising the level of both sales and income
for the first half.
Net sales (100 million yen)First half

Operating income/operating income ratio (100 million yen)
Progress rate

Second half

+60.6%+48.2%First half

50
160

120

127

23.3%
21.6%

74

67

30

33
13

23

55

60

16

(Second halftarget)

12

40

51

60

68

FY2022/1© Computer Engineering & Consulting Ltd. All rights reserved.

FY2023/1

FY2024/1

15%

10%

20

10

11

0

20%

30

(Second halftarget)2020

23.2% 25%
23.6%

21.7%

106

100
80

40

Second half
30%

29.4%

142

140

Progress rate

14

0

5%

0%

FY2022/1

FY2023/1

FY2024/1
10Orders received/orders in hand
Digital Industry Business

Orders received

Orders in handService Integration Business

System development and connected development projects for the manufacturing industry expanded.
Migration services and services in cooperation with Microsoft grew in the focused business areas while ICT
infrastructure construction grew in the core business.
System development projects for the manufacturing industry expanded.
Orders in hand increased due to long-term, large-scale operation projects in the data center business,security services, and services in cooperation with Microsoft.
Year-on-year
rate of change

Orders received (million yen)

Year-on-year
rate of change

Orders in hand (million yen)

+14.9%+3.5%

52,37746,221

16,76040,56135,206

17,15314,366 14,309

16,19812,65323,14012,791
4,167

12,10830,02323,098FY2022/1

35,22427,907

4,835

3Q

4Q

1Q

3,533

3,340

16,445
3,209

3,150

11,022 11,159

8,366

8,969

8,465

1Q

2Q

3Q

4Q

13,394 12,317 14,128 13,235

10,3902Q

FY2023/1© Computer Engineering & Consulting Ltd. All rights reserved.

3,343

3,366

15,657

3,021

8,899

18,311

10,262

8,623

3,194

2,817

15,226

17,912

15,245
2Q

14,680
4,418

2,892

11,486

8,921

8,389

7,895

1Q

27,233

26,301

11,792 11,183

12,164

17,662

3Q

4Q

1Q

FY2024/1

2Q

FY2022/1

1Q

2Q

FY2023/1

3Q

4Q

1Q

2Q

FY2024/1
11

Year-on-year comparisons of sales by industry(Unit: Million yen)
Year-on-year comparisons
FY2023/2Q

FY2024/2Q

Points by industry
Amount of change

Manufacturing industry

10,331

11,423Component ratio(44.0%)(43.2%)

Communication andinformation service industry

6,495

7,003

(27.6%)(26.5%)

Financial industry

2,321

2,436

Component ratio(9.9%)(9.2%)

Distribution industry

1,314

1,539

Component ratio(5.6%)(5.8%)

Government and public offices

933

1,946

Component ratio(4.0%)(7.4%)

Component ratio

Other

2,082

2,096

Component ratio(8.9%)(7.9%)

23,47826,445(100%)(100%)

Total© Computer Engineering & Consulting Ltd. All rights reserved.

Rate of change

1,092

10.6%

507

7.8%

115

5.0%

224

17.1%

1,012

108.5%

14

0.7%[Manufacturing industry]
System development projects expanded.
ICT infrastructure construction projects expanded.

[Communication and information
service industry]
ICT infrastructure construction projects of leading
carriers expanded.

[Financial industry]
Large-scale projects for major customers postponed.
Size of business negotiations shrank.

[Distribution industry]
Migration projects expanded.
Services in cooperation with Microsoft expanded.

[Government and public offices]

2,967

12.6%

Security services expanded.
System development projects expanded.

12

Balance sheet compared with the beginning of the fiscal year
(Unit: Million yen)
End of January 2023

End of July 2023

Amount of change

35,20836,662

1,453

Current assets

Rate of change

4.1%

23,30225,392

2,090

9.0%

Non-current assets

11,124

10,923(201)(1.8%)

Total assets

46,33347,585

1,251

2.7%

8,311

7,519

(791)

(9.5%)

Non-current liabilities

642

669

26

4.2%

Shareholders’ equity

37,30939,370

2,061

5.5%

Equity ratio

80.5%

82.7%

ー

2.2 ptCash and deposits

Current liabilities© Computer Engineering & Consulting Ltd. All rights reserved.

Point[Assets] Increased
Increase in cash and deposits[Liabilities] Decreased
Decrease in allowance for loss
on orders received[Shareholders’ equity]
Increased
Increase in retained earnings

13

Unprofitable projects and measures to deter unprofitability◼ Status of unprofitable projects
 In the second quarter of the fiscal year ending January 2024, confirmed stable operation of thesystem even during the peak season.
 Transitioned to the normal operation in an enhanced environment upon optimizing the structure.

◼ Measures to deter unprofitability
Measures to prevent occurrence of unprofitability• Refine check items at the time of receiving orders and make the risk measures stricter.
• Make the project progress transparent to issue warning alerts early.

Measures to quickly make improvements in the event of a problem• Reconstruct the company-wide response scheme in the event of a problem.
• Standardize the judgment criteria for introducing third parties to projects.
© Computer Engineering & Consulting Ltd. All rights reserved.

14

Contents

1.

Operating Results for the Second Quarter of the Fiscal
Year Ending January 20242.

Full-Year Earnings Forecast for the Fiscal Year Ending
January 2024

3.

© Computer Engineering & Consulting Ltd. All rights reserved.

Appendix15

Adjustments to full-year earnings forecast for the fiscal year ending January 2024
◼ Full-year earnings forecast has been revised upward since demand for ICT investment by customers is on the riseagainst the backdrop of DX promotion.
◼ We will aim to achieve the full-year targets despite the lingering concerns about rising prices and stagnant overseas
economic conditions.

(Unit: Million yen)Comparison with previous
forecast

Year-on-year comparison

FY2024/1(before revision)

FY2024/1(after revision)

51,00052,000

1,000

2.0%

48,206

3,793

7.9%

Operating income

5,550

6,070

520

9.4%

4,374

1,695

38.8%

Operating income
ratio

10.9%

11.7%

0.8 ptー

9.1％

2.6 ptーOrdinary income

5,570

6,100

530

9.5%

4,413

1,686

38.2%

Ordinary income
ratio

10.9%

11.7%

0.8 ptー

9.2％

2.5 ptーNet income

3,840

4,200

360

9.4%

5,179

(979)

(18.9%)Net income ratio

7.5%

8.1%

0.7 ptー

10.7％(2.6 pt)ーNet sales© Computer Engineering & Consulting Ltd. All rights reserved.

Amount of change Rate of change

FY2023/1

Amount of change Rate of change

16Full-year earnings forecast◼ Excluding the impact of the advance recording for in-house security products from the third quarter to the second
quarter of this fiscal year, second half results are expected to remain in line with the initial plan.
◼ In the fiscal year under review, which is the second year of the medium-term management plan, we will strengthenbusiness activities to achieve our targets in both our focused business areas and core business.
Operating income (Unit: 100 million yen)

Net sales (Unit: 100 million yen)
1Q

2Q

3Q

4Q

1Q

2Q

3Q

Operating income ratio (Unit: %)4Q
First six months

520

518
480

137
128

126
126

120
114

119
126

452

116
110

109
114

482

59

129

14

50

15

116
118

10

132
132

FY2020/1 FY2021/1 FY2022/1 FY2023/1 FY2024/1© Computer Engineering & Consulting Ltd. All rights reserved.

12
16

13.3%

60

13

118

Full-year total

11.4%
42
11

8
11
15

8

13

43

10.9%
11.7%

9.9%

10.8% 10.9%
10.0%

10
13

(Forecast)

8.4%

16

8.5%
10
18
9

FY2020/1 FY2021/1 FY2022/1 FY2023/1 FY2024/1

FY2020/1 FY2021/1 FY2022/1 FY2023/1 FY2024/1
17Full-year earnings forecast by business segment◼ Digital Industry Business : Mobility, a focused business, is expected to remain strong.
◼ Service Integration Business : Strong performance is expected in both focused business and the core business.
(Unit: Million yen)

FY2024/1(before revision)
Net sales

Operating income
Rate of return

FY2024/1(after revision)
Net sales

Operating income
Rate of return

Amount of change
Net sales
Rate of change

Operating income
Rate of change

Digital Industry
Business

18,000

4,000
22.2%

18,150

4,150
22.9%

150
0.8%

150
3.8%

Service Integration
Business

33,000

5,600
17.0%

33,850

6,120
18.1%

850
2.6%

520
9.3%

Corporate expenses

ー(4,050)ー(4,200)ー(150)

51,000

5,550
10.9%

52,000

6,070
11.7%

1,000
2.0%

520
9.4%

Total

© Computer Engineering & Consulting Ltd. All rights reserved.

18

Full-year earnings forecast by business segment◼ Net sales and operating income forecast(Unit: Million yen)
FY2024/1
2Q

Digital Industry
Business
Focused business

Focused business

Full-year forecast

Progress rate

Net sales

9,052

18,15049.9%

Operating income

2,109

4,150

50.8%

Net sales

2,958

6,300

47.0%

FY2024/1
2Q

Service Integration
Business

FY2024/1

FY2024/1
Full-year forecast

Progress rate

Net sales

17,39333,85051.3%

Operating income

3,524

6,120

57.6%

Net sales

3,923

7,900

49.7%

Focusedbusiness

Focusedbusiness

7,900 6,300
Digital Industry
Core business
Service Integration
Core business

11,85025,950(FY2024/1 Sales target by business segment)© Computer Engineering & Consulting Ltd. All rights reserved.

19

Contents

1.

Operating Results for the Second Quarter of the Fiscal
Year Ending January 20242.

Full-Year Earnings Forecast for the Fiscal Year Ending
January 2024

3.

© Computer Engineering & Consulting Ltd. All rights reserved.

Appendix20

Other indicators◼ Number of employees (Unit: Persons)◼ ROE/operating income ratio*2
ROE

2,248

2,265
2,231

2,288

2,260

2,239

2,212

2,207
2,184

2,195

14.2%

16%
12%

8%

Operating income ratio

10.8%
8.7%

11.7%
9.3%

9.1%

FY2022/1

FY2023/1

4%
1Q

2Q

3Q

4Q

1Q

FY2022/1

2Q

3Q

4Q

FY2023/1

1Q

2Q

0%
FY2024/1 (Forecast)

FY2024/1◼ Number of partners*1 (Unit: Persons)◼ Payout ratio and dividends*2
(Yen)
100

InterimYear-end

Payout ratio

46.1%

40.0%

80

1,735
1,615

1,627

1,645

1,667

1,711

40%

29.6%

1,769

50

30%

45
20

25

20%

20

25

25

FY2022/1

FY2023/1

60
40

1,546

1,476

40
20

1,501

20
0

1Q

2Q

3Q

4Q

1Q

FY2022/1

2Q

3Q

FY2023/1

4Q

1Q

2Q

FY2024/1*1 Computer Engineering & Consulting <Non-consolidated> excluding service contracts.
© Computer Engineering & Consulting Ltd. All rights reserved.

50%

10%
0%

FY2024/1 (Forecast)*2 The Company recorded gain on sale of investment securities to extraordinary income in
the first half of the fiscal year ended January 2023, and increased the dividend by 5 yen.

21

Company profile
Company nameComputer Engineering & Consulting Ltd.

Date ofestablishment

February 24, 1968

Date of Listing

April 2022 (Prime Market)
July 2001 (First Section of Tokyo Stock Exchange)

Capital6,586 million yen

Net sales

48,206 million yen (FY ended Jan. 2023)

Licenses andapprovals■ Stated in the list of companies providing system auditing Business■ Digital Industry Businessservices, the Ministry of Economy, Trade and Industry
Providing original ICT products and services aimed mainly at supporting the
Description■ Stated in the list of companies providing information
manufacturing industry to improve operational efficiency, improve quality, andsecurity auditing services, the Ministry of Economy, Tradecreate attractive products.
and Industry■ Service Integration Business■ PrivacyMark-certified business operator 11820032(12)Supporting the entire ICT life cycle, which is necessary to reform and improve■ JQA Certification
the business operations of companies and organizations. Providing total ICT• Quality Management Systemservices and products, including cloud computing and security.
ISO 9001:2015 (Certification No. JQA-1481)<Two businesses contributing to the realization of a sustainable society>• Information Security Management System
ISO/IEC 27001 (Certification No. JQA-IM0007)• Cloud Service Information Security Management System
ISO/IEC 27017 (Certification No. JQA-IC0040)
Total integrator for ICT
ICT partners specializing in manufacturing industry• Information Technology Service Management System
ISO/IEC 20000 (Certification No. JQA-IT0005)
Promoting ESG management and contributing to development of customers’ business through tacklingsocial problems• Environmental Management System
Needs for ICT that are increasing owing toKnow-how on the whole ICT
ISO 14001:2015 (Certification No. JQA-EM7701)
CloudAI
alteration to a smart factory
infrastructure■ Telecommunication engineering business, Minister ofIntroduction of IoT and expansion ofBase to cooperate in in-house DC
PoC by customers
and cloudLand, Infrastructure, Transport and Tourism
Big data
IoT
Systems specializing in lines ofTechnologies for AI, IoT, and sensing(Ordinary-4) No. 28700
business and operations
Robotics
Security
Accumulating know-how on FA
Defense against evolving menaces(License date: November 21, 2022)

Number of
Employees

2,260 (as of July 31, 2023)

Consolidated
subsidiaries

8 companies

Head Office

JR Ebisu Bldg., 5-5 Ebisu Minami 1-chome, Shibuya-ku, Tokyo
150-0022

Representative

Takashi Himeno, Representative Director & President

control, robots, and equipment© Computer Engineering & Consulting Ltd. All rights reserved.

to security

22Medium-Term Management Plan Vision 2025

Vision 2025: To a Company That Creates
the Future with ICT Technologies
1. Strengthening business capabilities
Increasing the areas of focused business to six from two

1. Strengthening business capabilities
Shifting to service-oriented business

2. Strengthening human resources and technical capabilities

Business growth
X
Personnel
assignment

Cultivating human resources

1. Strengthening business capabilities
Changing to an increase in the number of employees
Diversity and work-style reform

A synergy of business across the whole company

3. Strengthening management foundation
Promoting ESG activities

Target management
indices© Computer Engineering & Consulting Ltd. All rights reserved.

1. Strengthening
business
capabilitiesImproving the financial base and other matters
Promotingin-house DX

Net sales

Ordinary income

Ordinary income ratio

ROE/Payout ratio

56.0 billion yen

6.9 billion yen

12% or more

ROE: 12% or more
Payout ratio: 40% or more

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Segment Information
Digital Industry Business

Service Integration Business

ICT partners specializing in manufacturing industry

Total integrator for ICT
Service integration

Smart factory⚫ Consulting, system development, maintenance and operation using⚫ Product planning, product development and system development,

maintenance, and solution services for production and logistics areas in the
manufacturing industry

Enterprise

Microsoft’s cloud services such as Dynamics 365, Microsoft 365 and Azure⚫ Development, maintenance and operation of solution systems for government

agencies and municipalities

AX services⚫ Consulting, system development, maintenance and operation, and solution⚫ Consulting, systems development, maintenance and operation related to ICT

modernization using migration services

services related to the IoT-connected field with a focus on mobility

Connected services⚫ Operations related to the development of embedded software, mainly for in-vehicle devices

Business systems⚫ Operations on quality solutions such as automated testing, CI/CD building⚫ System development, maintenance and operation for the financial sector,

including banking, insurance, credit card, securities and leasing

Platform architect⚫ Monitoring and operation of various security services and security equipment⚫ Overall ICT services for the Technical Information Division (bill of

Chubu services

Security services

material/PDM/CAD), Corporate Information Division(sales/finance/accounting), and Corporate Information Division(personnel/production logistics) that target the automotive industry⚫ Productdevelopment and sales, solution services, system development,
maintenance and operation related to office security based on authentication
technology⚫ Operations related to the overall life cycle management from planning and

Platform

examination of ICT infrastructure construction and cloud services to design,
construction, migration and operation⚫ Provision of SI services using business SI and EOS solutions in the Kansaiand Hokuriku areas

Nishinihon services⚫ Product planning, development, maintenance, operation and provision of

product services, with a focus on the IoT field in the logistics andmanufacturing sectors⚫ Provision of system development, verification, maintenance, operation andinstallation services, mainly in the FA/industrial equipment and medical &healthcare fields⚫ Operations related to data center and cloud services

Data center

operation management services

Group companies
Foresight System, etc.

© Computer Engineering & Consulting Ltd. All rights reserved.

⚫ Operations related to system operation design, implementation support, and⚫ Nearshore development, construction, maintenance and operation⚫ Temporary staffing service

24Focused business (Results for FY ended Jan. 2023)

Total company sales: 48.2 billion yen
Service Integration Business

Digital Industry Business31.3 billion yen

16.8 billion yen

Focused business

Focused business7.6 billion yen

5.1 billion yen

Focusedbusiness

Focused business: Business areas that leverage theirunique features

DigitalIndustry
Business

Focusedbusiness

Digital Industry
Core business

Service Integration
Core business© Computer Engineering & Consulting Ltd. All rights reserved.

Service
Integration
Business

Production andlogistics

In addition to product services for the
manufacturing industry, LogiPull, a logistics
solution, is added to support digitalization andDX strategy in fields from production sites tologistics.

Mobility
services

Provides services utilizing
automotive/transportation big data, mainly inthe connected field of the automotive industry.

Services incooperation with
Microsoft Japan

Promotes services in cooperation with
Microsoft and supports DX, mainly throughmanagement analysis and marketing of
Dynamics 365/Azure platform.

Migration
services

Supports legacy ICT innovation, cloud
migration and DX of systems and application
environments.

Security
services

Provides security consulting, design,
construction, and operation services, with aportfolio of products that protect ICT elements
connected to the network from security threats.

DX cloudplatform

Promotes cloud computing through installationof in-house applications on cloud platforms.

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Disclaimer✓ This document has not been prepared for the purpose of soliciting investments.
✓ Forward-looking statements in this document are based on judgments and assumptions made inlight of trends in the Japanese economy and the information services industry, as well as
information available at the time of preparing this document.
Accordingly, there is a possibility that forecasts may fluctuate due to uncertainties inherent inthem, changes in domestic and overseas situations relevant to future business operations andother factors.
✓ The contents stated in this document may not be reproduced, transcribed, reprinted or
distributed without permission of the Company.
Contact:
Computer Engineering & Consulting Ltd.
Corporate Management Group, Business Promotion Unit,
Corporate Planning Division, Investor Relations
Corporate Management Group, Corporate Administration Unit,
Accounting Division, Investor Relations

TEL: 03-5789-2442
TEL: 046-252-4111

E-mail: IR@cec-ltd.co.jp© Computer Engineering & Consulting Ltd. All rights reserved.

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